Robbins LLP: Lion Biotechnologies, Inc. (LBIO) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Lion Biotechnologies, Inc. (NasdaqGM: LBIO) in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of all purchasers of Lion securities between November 14, 2013 and April 10, 2017, for alleged violations of the Securities Exchange Act of 1934 by Lion’s officers and directors. Lion, a clinical-stage biotechnology company, focuses on developing and commercializing cancer immunotherapy products to harness the power of a patient’s immune system to eradicate cancer cells.
Lion Accused of Engaging in Illegal Stock Promotion Scheme
According to the complaint, Lion attested in its public filings to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. On May 14, 2014, Lion stated in its 1Q 2014 Form 10-Q that it received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) seeking information concerning “documents and communications related to individuals who post or have posted articles regarding the Company on equity research or other financial websites.” On April 10, 2017, the SEC found that Lion, through its former Chief Executive Officer Manish Singh (“Singh”) engaged in a scheme to mislead investors by commissioning over ten internet publications and 20 widely distributed emails promoting Lion to potential investors that purported to be independent from the company, when, in fact, they were paid promotions. Further, Singh engaged a stock promotion firm to pay writers to publish articles about Lion on investment websites as well as to coordinate the distribution of articles to thousands of electronic mailboxes.
Lion Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.